While the federal minimum wage is still $7.25 per hour, employers in many states are facing minimum wage hikes in 2020. For some states these hikes are a one-time affair. But a number of states have imposed a schedule of annual minimum wage increases over the next few years. In addition, other states require automatic increases to account for inflation.
Here is a quick run down of changes in state minimum wage law effective January 1, 2020:
- Alaska – $10.19
- Arizona – $12.00
- Arkansas – $10.00
- California – $13.00 (26 or more employees); $12.00 (25 or fewer employees)
- Colorado – $12.00
- Connecticut – $12.00
- Florida – $8.56
- Illinois – $9.25
- Maine – $12.00
- Maryland – $11.00
- Massachusetts – $12.75
- Michigan – $9.65
- Minnesota – $10.00 (gross revenue of $500,000 or more); $8.15 (gross revenue of less than $500,000)
- Missouri – $9.45
- Montana – $8.65
- Nevada – $9.00 (generally applicable); $8.00 (employers offering qualified health insurance)
- New Jersey – $11.00 (6 or more employees) $10.30 (5 or fewer employees)
- New Mexico – $9.00
- New York – $11.80 (generally applicable); Fast-food workers ($13.75)
- Ohio – $8.70 (generally applicable); $7.25 (gross receipts of less than $314,000 per year)
- South Dakota – $9.30
- Vermont – $10.96
- Washington – $13.50
It is also important to check to see whether your locality requires higher minimum wages. For example, in the District of Columbia, minimum wage is now rising to $15.00 per hour. Other municipalities raising minimum wage include:
- Albuquerque, New Mexico
- Chicago, Illinois
- Denver, Colorado
- Flagstaff, Arizona
- Minneapolis, Minnesota
- New York, New York
- Seattle, Washington
- Paul, Minnesota
Finally, employers should also be aware that numerous other localities and several states are raising minimum wage on July 1, 2020. For example, Oregon’s regional minimum wage requirements are changing this summer. Charles McDonald III of Ogletree Deakins provides further guidance in this instructive article in the National Law Review. Also, NFIB provides additional guidance—including information on DOL’s new overtime rule—in this essential Wage and Hour Law Guidebook.
